Korea Southern Power to Buy Wood Pellets for Renewables Quota

By Sangim Han -
Jul 19, 2012

Korea Southern Power Co., a unit of
Korea Electric Power Corp. (KEP), plans to be the first of the
nation’s utilities to buy wood pellets to meet a renewable-
energy quota imposed by the government, a company official said.

Korea Southern is seeking to buy 15,000 metric tons of
pellets for delivery in October, the official said by phone
today, asking not to be identified because the information
hasn’t been made public. The purchase is part of plans to buy
50,000 tons in the fourth quarter, an e-mail from the official
showed. Bidding will be at 10 a.m. on the tenth day after a
tender notice is posted on the company’s website between July 23
and 25, the official said.

South Korea’s 13 power utilities must boost the use of
renewable sources after the government imposed an alternative-
energy quota this year to reduce emissions. The mandatory quota
for the proportion of electricity generated by renewable sources
will be increased to 10 percent in 2022 from 2 percent in 2012,
according to the Ministry of Knowledge Economy.

More utilities may purchase wood pellets to meet the quota
because of the time taken to develop solar and wind sources for
power generation, the official said.